Democrats, GOP trade tax-hike accusations

WilliamL. Watts

WASHINGTON (MarketWatch) -- Congressional Democrats and Republicans traded verbal blows Tuesday as each attempted to portray the other party as keen to boost taxes on the middle class.

Meanwhile, a package of popular tax breaks that expired at the end of last year appear unlikely to be reinstated before the Republican-led Congress plans to adjourn at the end of the week.

The expired tax breaks include the research-and-development tax credit for businesses, as well as college-tuition relief, deductions for local and state sales taxes in some states, and help for teachers who purchase classroom supplies out of their own pockets.

"If the president would expend as much energy pushing for the tax extenders as he does for estate tax benefits for the 7,500 wealthiest families, millions of Americans would avoid a tax increase when these laws expire," said Rep. Charles Rangel of New York, the senior Democrat on the tax-writing House Ways and Means Committee.

Republican efforts to tie the tax breaks to controversial legislation to permanently lower the estate tax failed to clear hurdles in the Senate earlier this year. Subsequent attempts by Sen. Max Baucus of Montana, the senior Democrat on the tax-writing Senate Finance Committee, to bring up legislation that includes only the non-controversial tax measures have been blocked by GOP leaders, who have insisted that the tax package include the estate-tax relief.

Meanwhile, Sen. Jim DeMint, R-S.C., attempted Tuesday to revive consideration of the "trifecta bill," which tied together the expired tax provisions with the estate-tax language and a proposed increase in the minimum wage, but met a parliamentary objection by Democrats.

"We see it again, a bill that's been debated and considered for many, many months, a bill that a [Democratic] press conference was held this very day saying we need to pass a major portion of it. Yet, at every turn, there's blocking," DeMint said.

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